According to new research released by Javelin Strategy and Research, more than 16 million people in the US were identity theft victims in 2017. Identity theft increased in 2017 over the previous year by approximately 1.3 million consumers. This report comes on the heels of news that over 150 million consumers, include those here in Las Vegas and Henderson, were victims of the Equifax Data Breach in late 2017.
This recent news makes it more important than ever for Las Vegas consumers to check their credit reports often to make sure they are not victims. If you notice any information on your credit report that is inaccurate, you have the right to dispute the incorrect credit information with the credit bureaus. If the credit bureaus and lenders fail to update this inaccurate information, you may bring claims against them at no cost to you under the federal Fair Credit Reporting Act.
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On March 8, 2018, the Ninth Circuit overturned a Las Vegas federal court ruling and found that the threat of future harm related to identity theft was sufficient to allow the plaintiffs to have standing to sue. In this case, the plaintiffs were victims of identity theft after a 2012 data breach of the online retailer Zappos.com in which hackers stole names, account numbers, passwords, email addresses, and payment information. Some plaintiffs alleged that their information was used in actual identity theft or fraud after the breach while others did not experience those damages.
The court found that the allegations of increased risk of future identity theft posed a “credible threat of real and immediate harm.” Specifically, the court found that “the information taken in the data breach still gave hackers the means to commit fraud or identity theft.” This case will assist Las Vegas and Henderson consumers by permitting their data breach related claims to move forward in the courts even if those consumers have not yet experienced identity theft or fraud as a result of the theft of their personal information. The House Financial Services Committee approved a bill this week to amend the Fair Debt Collection Practices Act to exclude law firms and licensed attorneys from the definition of a “debt collector” under the law. The bill would also protect debt collection lawyers from liability with the Consumer Financial Protection Bureau for debt collection activities, including serving and filing legal pleadings, serving discovery requests, and enforcing judgments against consumers.
The proposed bill now moves the House floor for consideration. If passed, this legislation will have a significant impact on Las Vegas consumers by restricting the scope of their rights under federal law to stop harassing, abusive, and/or misleading debt collection tactics by debt collection lawyers and law firms. This is especially true because Nevada does not have an enforceable state law to bring similar debt collection abuse claims. Equifax announced today that an additional 2.4 million Americans were impacted by last year’s massive data breach. The credit bureau reported that hackers stole these consumers partial driver’s license numbers, but did not obtain additional personal information.
This new report brings the total Americans affected to approximately 147.9 million Americans, making it one of the worst data breaches in U.S. history. Equifax says it will reach out to the newly impacted consumers to provide credit monitoring and identity theft protection offered to the other data breach victims. House Democratic lawmakers have asked Equifax to extend free credit monitoring and identity theft protection from one year to three years following the massive 2017 data breach affecting 145 million Americans. The lawmakers’ request is based on studies showing that identity thieves often wait longer than a year to act on the stolen data. While not making a decision on this request, Equifax replied in a statement to The Associated Press that it has launched a service allowing consumers to lock and unlock their credit file with the company for free. Congress' request makes it clear that the effects from the Equifax data breach will continue for years to come. As a result, Nevada consumers should continue to monitor their credit profiles closely and dispute any fraudulent or inaccurate information immediately in writing with all three credit bureaus (Equifax, Experian, and Trans Union). If these bureaus fail to update, consumers have the right to hire an attorney for no out-of-pocket expense to bring claims under the Fair Credit Reporting Act to restore their credit and receive compensation. Shortly after the announcement of the Equifax Data Breach in September 2017, then Director of the Consumer Financial Protection Bureau (“CFPB”), Richard Cordray, authorized an investigation of the matter. On Monday, Reuters reported that the current director, Mick Mulvaney, has most likely put an end to this investigation, which was seeking to obtain information regarding Equifax’s actions leading to the breach and its possible liability. The report shows that the CFPB has “shelved plans for on-the-ground tests of how Equifax protects data[.]"
With this pullback in regulatory action, enforcement against Equifax (and other credit bureaus) will likely rely more heavily on private consumer protection attorneys to bring claims related to identity theft and credit reporting violations. Source: https://www.reuters.com/article/us-usa-equifax-cfpb/exclusive-u-s-consumer-protection-official-puts-equifax-probe-on-ice-sources-idUSKBN1FP0IZ The House Financial Services Subcommittee on Financial Institutions and Consumer Credit is examining bipartisan legislation that would amend the Fair Credit Reporting Act. The new legislation, entitled “The Protecting Veterans Credit Act of 2017,” would exclude certain medical debts incurred by a veteran from their credit report if the medical services predate the credit report by less than one year. The new legislation also includes a dispute process for consumer reporting agencies to handle veterans’ disputes. The one-year delay in reporting provides time for the VA and its contractors to resolve billing and copay issues with the veteran before the veteran incurs derogatory credit reporting.
Veterans are among the hardest-hit group of Americans in terms of credit and collections. Assuming the bill passes, this bipartisan legislation will be a great step forward in assisting veterans to improve their creditworthiness. As we enter a new year, Nevada consumers should spend some time focusing on their finances and credit. Here are 3 helpful tips to get you on your way to financial success in 2018:
2. Focus on Savings Automating savings each month using online tools from your bank will help keep you on track. As stated, a good rule of thumb for savings is 20% of your income. 3. Check your credit profiles regularly It is imperative to check your credit reports regularly to make sure you are not a victim of identity theft and to ensure your accounts are reporting accurately. You may obtain free yearly reports from www.annualcreditreport.com and may also check your credit profiles using monitoring sites such as Credit Karma. Former NBA player and Las Vegas resident Kermit Washington has pleaded guilty to three felony charges, including aggravated identity theft and filing false tax returns. Mr. Washington and other cohorts engaged in a charity fraud scheme and used victims’ identity illegally to further the fraud. He will face up to eight years in prison and fines of up to $750,000.
The continued prevalence of identity theft here in Nevada and around the United States makes it more important than ever for consumers to pull their credit reports often. You can access your official three-bureau credit reports through annualcreditreport.com. With over 1.2 million Nevadans affected by the recent Equifax data breach, many Nevada consumers are rightfully concerned about how to protect their identities. There are two main options to protect yourself from future fraudulent credit reporting: a fraud alert or a credit freeze.
Fraud Alert
The decision regarding which option is best comes down to the personal financial situation and preference of the consumer. If you are planning to open credit accounts in the near future, it may be advisable to initiate a fraud alert rather than a full credit freeze. Consumers should consult their attorneys and financial advisors to discuss their best options to stay protected. |
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